Space Matrix Analysis on Power Protection Relay in Malaysia
Space Matrix Analysis on Power Protection Relay in Malaysia
Objective: Although the SWOT Matrix has been done last week, and it is widely used in strategic planning, it has some limitation, which did not show how to achieve a competitive advantage. Hence, the SPACE Matrix, another useful matching tool, is used here, to identify whether aggressive, conservative, defensive, or competitive strategies are most appropriate.
Financial Strength
Total revenue from Engineering Project decrease from 6M to 2.5M
Net profit drop from RM740,000 in 2008 to RM148,000 in 2009
Return on equity drop 0.59 to 0.15
Inventory turnover increased 12.40
Fixed Asset turnover reduce from 3.09 to 1.66
Industry Strength
Government Policy to regular compulsory annual power feeder commissioning testing
High level of expertise requirement to enter power industry
Regulation to safety certification by chartered professional engineer
The power industry require high reliability and high safety margin
Limited power utility supplier
24.0
Environmental Stability
New Technology and Philosophy are frequently updated and developed
Low switching cost
Few but equally strong competitors
Customer is moving to green technology, opening up a new market
Currency exchange fluctuation
-1.0
-3.0
-6.0
-1.0
-4.0
-16.0
Competitive Advantage
Limited regulated power utility supplier, and low switching cost
Our products provide outstandingly 10 years warranty
Our products come with integrated logic variable, high customized automation capability
Strong technical team which we could customize solution to customer
Market share in power utilities grow from 8% to 11%
-6.0
-1.0
-1.0
-1.0
-4.0
-13.0
Conclusion
ES Average is ( -16 / 5 ) = -3.2
CA Average is ( -13 / 5 ) = -2.6
IS Average is ( 24 / 5 ) = 4.8
FS Average is ( 9 / 5 ) = 1.8
Directional Vector Coordinates:
x-axis: -2.6 + ( +4.8 ) = +2.2
y-axis: -3.2 + ( +1.8 ) = -1.4
Therefore, my company should pursue Competitive Strategies.
Forward integration
Direct proposal to private sector
Private sector typically takes power utility suppliers advices and recommendation to install their own incomer power feeder. Therefore, my forward integration is not to take over power utility company, which is impossible due to theyre regulated supplier. Instead, we take our initiative to approach the potential private sector to consult them on our solution in incomer power feeder. What more is, we could customize various sub-station automation solutions for their power generator which restore and normalize automatically.
Market penetration
Penetration with better service quality